Global Essential Oils

Global Essential Oils Market Research Report: Forecast (2022-27)

By Type (Citrus, Tea Tree, Lavender, Eucalyptus, Rosemary, Others (Chamomile, Peppermint, etc.)), By Application (Aromatherapy, Food & Beverages, Healthcare, Personal Care & Cosmetics), By Region (Nor Read more

  • Food & Beverages
  • Aug 2022
  • 189
  • FB55023

Market Definition

Essential oils are concentrated oils derived from plants and are known for having plant essences, which they get through the distillation process. They smell great, help reduce stress & treat fungal infections, and induce sleep. Their existence date back a thousand years ago, and since then, they have been used extensively for medicinal purposes. However, essential oils, nowadays, are used less for medical purposes and more for skincare, aromatherapy, & alternative healing practices. They can be extracted from almost any plant substance, like flowers, tree bark, etc. Some of the most commonly used essential oils available in the market include tea tree, rosemary, lavender, eucalyptus, and citrus, among many others.

Market Insights

The Global Essential Oils Market is poised to grow at a CAGR of around 8.8% during the forecast period, i.e., 2022-27. Most of the market expansion would be propelled by the rising consumer beliefs on the healing benefits of essential oils without any side effects, coupled with their mounting utilization across different end-user verticals like personal care & cosmetics, healthcare, etc.

The global production & consumption of essential oils are continually surging, and they are being adopted obsessively for household, commercial, & industrial applications. As more and more people are increasingly focusing on their health & wellbeing, and aromatherapy is being perceived positively on a larger scale, worldwide sales of essential oils are skyrocketing.

Report Coverage Details
Study Period Historical Data: 2017-20
Base Year: 2021
Forecast Period: 2022-27
CAGR (2022-2027) 8.8%
Regions Covered North America: The US, Canada, Mexico, Rest of North America
Europe: Germany, The UK, France, Italy, Spain, The Netherlands, Rest of Europe
Asia-Pacific: India, China, Japan, Australia, Rest of Asia-Pacific
South America: Brazil, Argentina, Rest of South America
Middle East & Africa: UAE, South Africa, Rest of Middle East & Africa
Key Companies Profiled

Aura Cacia, doTERRA, DuPont, Givaudan, NOW Essential Oils, Plant Therapy, Rocky Mountain Oils, LLC, Sydney Essential Oil Co., The Lebermuth Company, and Young Living.

Unit Denominations USD Million/Billion

 

The leading companies in the global essential oils market are adopting different sales strategies like multi-level marketing to expand their customer base & business prospects. While essential oils are being sold rigorously through retail outlets, companies have also directed their focus on providing these products through e-commerce platforms. With this, customers now have convenient access to essential oils, along with discounts & offers.

In addition to customers, wholesalers are also leveraging the benefits of online portals as manufacturers have allowed them to place bulk orders. As a result, multi-level marketing techniques are aiding manufacturers in making their products available to an even larger audience, i.e., creating new directions for the essential oil industry to expand in the future.

Furthermore, the rising consumer inclination toward organic & plant-based personal care and food & beverages is compelling companies to adopt natural products. It is prominently due to stringent regulations for using environmentally friendly ingredients in the cosmetics and food & beverage sectors. As a result, the mounting sales of plant-based products that lack synthetic & animal-derived ingredients are benefitting the essential oil market growth globally.

Latest Trends in the Global Essential Oil Industry

  • Aromatherapy: Since essential oils promote physiological & psychological activities in the body, they are being used extensively in aromatherapy. Recently, aromatherapy has transformed from just a complementary therapy to a full-fledged mainstream therapy. Its rising popularity & demand attributes mainly to the drastic growth in the disposable income of people in the last few years. As a result, consumer preferences have shifted toward more sophisticated lifestyles, and spa centers & visits are rapidly increasing every year, which, in turn, is shooting up the sales of essential oils across these places.
  • Functional Essential Oils: The world is witnessing an increasing consumer demand for functional fragrances in essential oils for their specific benefits like sleep-inducing, anxiety reduction, etc. The increased stress that people have experienced during the pandemic has been leading to the skyrocketing sales of functional essential oils that help people handle their moods & mental state better.
  • CBD: The legalization of CBD & its derivatives in the US, i.e., being followed gradually worldwide, is set to enchant people looking for natural, holistic solutions to aches & ailments. CBD-based essential oils offer additional healing benefits through cognitive enhancement/moisturization or altogether both.

Global Essential Oils Market Research Report: Forecast (2022-27)

Market Segmentation

Based on Type:

  • Citrus
  • Tea Tree
  • Lavender
  • Eucalyptus
  • Rosemary
  • Others (Chamomile, Peppermint, etc.)

Of all types, the versatile citrus oils with fresh, zingy, & uplifting aromas currently dominate the Global Essential Oils Market, as they can be utilized for multiple applications. Citrus essential oils are obtained from the fruit skin of lemon, orange, grapefruit, & sweet lime, among others, and are rich in nutritional content and have immune-boosting, stress-relieving, & antioxidant properties. They help freshen the air, uplift mood, ease anxiety, Boost emotional & physical energies, attack airborne bacteria & viruses, and stimulate the appetites of older people.

Their growing use for various purposes like fragrances in apparel & cleaning products, coupled with the mounting demand for plant extracts & natural ingredients as flavorants & colorants in food & beverages, are accelerating the growth of the essential oil industry worldwide.

Among all citrus oil types, orange & lemon oils hold a significant market share. Orange essential oil helps boost low libido, reduce PMS-related health issues, and fights hypertension owing to its blood-dilating property. Furthermore, it also helps lessen wrinkles & dark spots on account of its richness in Vitamin C, thereby witnessing a continuously growing demand globally.

Lemon essential oils are used excessively in detergents, perfumes, & soaps. They can also be used as a detoxifying agent & disinfectant for treating sore throats & flu. In addition, their astringent properties can help cleanse congested & oily skin, whereas if diffused in the air, they can help relieve apathy, depression, & mental fatigue. Hence, these aspects associated with lemon essential oils are augmenting their demand worldwide and, as a result, creating lucrative growth prospects for the leading companies in the global essential oils market.

On the other hand, lavender essential oils are also experiencing an upward trend in their demand. They aid in quick recovery of irritated & scarred skin, eliminating harmful bacteria, and easing muscle spasms & flatulence. They further help disinfect & relieve inflamed skin caused by the itchy bite of a poisonous bug while alleviating muscle tension when applied to the body during a massage.

Moreover, lavender essential oils exhibit calming & relaxing properties. Hence in aromatherapy, they act as a mild sedative that helps lessen stress by relaxing brain waves and induces sleep for those with chronic insomnia. Furthermore, when rubbed into the scalp, they can effectively eliminate lice, nits, & dandruff due to their antiseptic properties. As a result, these aspects are accelerating the popularity of lavender oils and, in turn, driving the overall essential oils market.

Based on Application:

  • Aromatherapy
  • Food & Beverages
  • Healthcare
  • Personal Care & Cosmetics

Among all applications, aromatherapy, as well as personal care & cosmetics, hold the majority share in the global essential oils market. The burgeoning demand for essential oils in aromatherapy owes to the increasing number of visitors to spa centers worldwide for massage purposes in order to physically, emotionally, mentally, & spiritually rejuvenate themselves.

On the other hand, food & beverage is an emerging sector in the domain of essential oils and is projected to attain a significant market share in the nearer future. More & more food & beverage producers are actively working on extending the shelf life of their products without compromising their quality and thus utilizing essential oils for the same. Among all, basil, fennel, lemon, orange, cassia, & peppermint are the most popular essential oils used for food and beverage applications as they are considered suitable for internal application.

In addition, since more & more consumers are showing an increasing interest in plant-based food & beverages, manufacturers are utilizing healthy essential oils to impart flavor to their final products. It owes to the superior health benefits of these oils that come from the plant's essence. Hence, based on these aspects, the food & beverage application is set to acquire a prominent share in the essential oil market over the forecast years.

Nevertheless, the healthcare sector is nowhere behind & a prominent end-user of essential oils that comprise volatile, complex chemical compounds with antiviral, anti-inflammatory, antifungal, & antibacterial properties. As a result, they are crucial ingredients in pharmaceutical agents & therapeutic drugs to treat various illnesses.

For example, phenol compounds in essential oils can enhance gut health, induce weight loss, lower cholesterol levels, reduce pain, & fight cancer. As a result of these factors, the healthcare sector is creating new directions for the leading players in the essential oils industry to yield significant profits and boost the market in the years to come.

Regional Landscape

Geographically, the Global Essential Oils Market expands across:

  • North America 
  • South America
  • Europe 
  • Middle East & Africa
  • Asia-Pacific

Of all regions, Europe dominates the Essential Oils Market globally, and the same trend is likely in the forecast period, i.e., 2022-27. The region has highly developed end-user industries that have realized the benefits of various essential oil components, including carvone, carvacrol, citral, cinnamaldehyde, & p-cymene, among others, which are the flavoring substances used in food & beverages in the EU. France, the leading perfume producer across Europe, is also amongst the top exporters of essential oils globally.

Besides, personal care & cosmetic product manufacturers across Europe are also substantially using these oils in their product offerings to cater to the growing consumer requirements for plant-based cosmetics. Moreover, the rising consumer inclination toward aromatherapy in countries like the UK, France, & Germany, owing to the surging consumer awareness of the numerous benefits of ethereal oils, is also augmenting the Europe Essential Oils Market.

On the other hand, both North America & Asia-Pacific hold the second-largest share in the essential oils industry globally. The growing stress levels among Americans due to their fast pace of life are augmenting the production & sales of essential oils in the country and, in turn, driving the North America Essential Oils Market. Besides, with improving income levels, people are spending massively on naturally-derived products, thus, leading to the mounting demand for essential oils across the region.

In addition, the increasing number of recreational & lifestyle users across North America are also promulgating the sales of essential oils in spas & aromatherapy facilities. Furthermore, the surging demand for energy & health drinks among fitness enthusiasts is another prominent aspect augmenting the utilization of essential oils in beverages, thereby boosting the North America Essential Oils Market.

On the other hand, Asia-Pacific is projected to become the fastest-growing essential oil industry in the forecast years. It owes mainly to the mounting consumer inclination toward plant-based food & beverages in India and China, i.e., the top importer of essential oils globally. With increasing health consciousness and a drastic surge in work pressure levels, China is witnessing a growing number of people investing massively in high-quality products to improve their lifestyles, which, in turn, is augmenting the demand for essential oils in the country.

On the other hand, India is set to become a promising market for essential oil manufacturers as the country is experiencing a rising inclination of consumers toward aromatherapy, growing awareness of various health benefits of essential oils, and their increasing requirement for organic products. Hence, these factors are likely to create new avenues for the Asia-Pacific Essential Oil Industry to witness a notable expansion in the coming years.

Market Dynamics

Key Drivers: Rise in Aromatherapy Practices & Growing Usage of Essential Oils in Food & Beverages

As consumers are becoming increasingly particular about their health & personal care choices, they are increasingly visiting spa & relaxation centers for aroma therapy using essential oils. Moreover, the rapidly booming tourism & hospitality sectors are also leading to increasing aromatherapy practices worldwide, thereby driving the Global Essential Oil Market.

On the other hand, several studies cite that essential oils play a crucial role in naturally preserving foods by showing antibacterial activities in foods like meat, fish, cooked rice, and milk & other dairy products. As a result, the rising consumer interest in organic products has made essential oils a significant ingredient in the food & beverage industry, with the growing utilization of these oils by food manufacturers to enhance the aesthetics as well as nutritional & functional properties of food products. Hence, these aspects further project a remunerative future for the global essential oils market.

Growth Restraint: Significantly High Prices of Essential Oils

Since essential oils are concentrated in nature, a large number of flowers are consumed in their production, owing to which reserves of fragrant plants are declining gradually. As a result, the ever-growing demand against limited supplies of flowers is leading to high prices of these oils worldwide, i.e., increasing the consumer inclination toward substitutes like synthetic oils. Hence, these dynamics pose a great threat to the expansion of the Global Essential Oils Market over the forecast years.

Key Questions Answered in the Market Research Report:

  1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the Global Essential Oils Market?
  2. What are the region-wise size, growth drivers, and challenges for the Global Essential Oils Market?
  3. What are the key innovations, opportunities, current & future trends, and regulations in the Global Essential Oils Market?
  4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Global Essential Oils Market based on the competitive benchmarking matrix?
  5. What are the key results derived from surveys conducted during the Global Essential Oils Market study?

Frequently Asked Questions

A. The Global Essential Oils Market is expected to record around 8.8% CAGR during 2022-27.

A. The rapid rise in the number of visitors to spas & relaxation centers, coupled with the mounting utilization of essential oils in the food & beverage sector, would drive the Global Essential Oils Market in the coming years. However, the considerably high prices of essential oils due to gaps in the demand-supply of aromatic flowers shall hinder the expansion of the Essential Oil Industry during 2022-27.

A. The food & beverages sector is projected to emerge as an area of profitable prospects for the major companies in the Global Essential Oils Market during 2022-27.

A. Asia-Pacific is expected to be the fastest-growing Essential Oil Market globally and create new directions for the leading players in the industry in the years ahead.

  1. Introduction
    1. Product Definition
    2. Research Process
    3. Market Segmentation
    4. Assumptions
  2. Preface
  3. Executive Summary
  4. Impact of Covid-19 on the Global Essential Oils Market
  5. Global Essential Oils Market Trends & Insights
  6. Global Essential Oils Market Dynamics
    1. Drivers
    2. Challenges
  7. Global Essential Oils Market Regulations & Policies
  8. Global Essential Oils Market Supply Chain Analysis
  9. Global Essential Oils Market Hotspots & Opportunities
  10. Global Essential Oils Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Type
        1. Citrus
        2. Tea Tree
        3. Lavender
        4. Eucalyptus
        5. Rosemary
        6. Others (Chamomile, Peppermint, etc.)
      2. By Application
        1. Aromatherapy
        2. Food & Beverages
        3. Healthcare
        4. Personal Care & Cosmetics
      3. By Region
        1. North America
        2. South America
        3. Europe
        4. Middle East & Africa
        5. Asia-Pacific
      4. By Company
        1. Competition Characteristics
        2. Market Share of Leading Companies, By Revenues
  11. North America Essential Oils Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenues (USD Billion)
    2. Market Share & Analysis
      1. By Type
      2. By Application
      3. By Country
        1. The US
        2. Canada
        3. Mexico
        4. Rest of North America
  12. South America Essential Oils Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenues (USD Billion)
    2. Market Share & Analysis
      1. By Type
      2. By Application
      3. By Country
        1. Brazil
        2. Argentina
        3. Rest of South America
  13. Europe Essential Oils Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenues (USD Billion)
    2. Market Share & Analysis
      1. By Type
      2. By Application
      3. By Country
        1. Germany
        2. The UK
        3. France
        4. Italy
        5. Spain
        6. The Netherlands
        7. Rest of Europe
  14. Middle East & Africa Essential Oils Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenues (USD Billion)
    2. Market Share & Analysis
      1. By Type
      2. By Application
      3. By Country
        1. UAE
        2. South Africa
        3. Rest of Middle East & Africa
  15. Asia-Pacific Essential Oils Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenues (USD Billion)
    2. Market Share & Analysis
      1. By Type
      2. By Application
      3. By Country
        1. India
        2. China
        3. Japan
        4. Australia
        5. Rest of Asia-Pacific
  16. Global Essential Oils Market Key Strategic Imperatives for Growth & Success
  17. Competition Outlook
    1. Competition Matrix
      1. Brand Specialization
      2. Target Markets
      3. Target End-Users
      4. Research & Development
      5. Strategic Alliances
      6. Strategic Initiatives
    2. Company Profiles
      1. Aura Cacia
      2. doTERRA
      3. DuPont
      4. Givaudan
      5. NOW Essential Oils
      6. Plant Therapy
      7. Rocky Mountain Oils, LLC
      8. Sydney Essential Oil Co.
      9. The Lebermuth Company
      10. Young Living
      11. Others
  18. Disclaimer
Essential Oils Market Segmentation Slide